Introducing Hedge: Financial Instruments for the Crypto Market

The Hedge Project aims to develop a platform that can help diversify the company via a range of flagship products. The platform will allow cryptocurrency investors to manage their risk exposure on the market. Hedge Project is also working to make indices for the crypto market that are professionally designed available to the general public. These will be the first indices of their kind and will be a base for the construction of various cryptocurrency baskets.

Essentially, Hedge wants to allow you to buy into the Cryptocurrency market with one click by allowing low-cost risk and portfolio diversification plus the convenience of accessibility, on one portal.

As with all other successful platforms that appear, the Hedge Project is being developed in response to a specific problem. In this case, the issue is the dramatic growth of cryptocurrencies and markets. In fact, there are already over 1,000 crypto-assets and cryptocurrencies on the market, with more arriving every single day. Just so far this year, various startups have already raised more than US$1.3 billion in their initial coin offerings.

With crypto markets and projects growing so rapidly and making such a significant profit, the lack of transparency and limited regulations are a recipe for disaster. While the best projects strive for full transparency, not all do. Factor in the lack of investor protection and the very limited regulatory oversight plus limited due diligence on the part of investors, and it becomes clear that something is lacking. The Hedge Project hopes to counter some of these issues via its indices and other products.

The Hedge Project will also help investors deal with the changes to the crypto markets. Specifically, it can help investors with diversification and selecting winning projects to invest in, something that has become much more challenging as the crypto markets grow.

In short, the Hedge Project hopes to resolve these issues by providing a platform that allows for both short and long exposure, as well as the identification of the real value of projects.

Important Details about the ICO and Crowdsale

The ICO is going on right now with the tokens for the Hedge Project known as Hedge (HDG). The crowdsale began on Sept. 15 and will last until Oct. 15, providing a full month to become an investor in the project. The tokens will be distributed on Oct. 16 following completing of the crowdsale.

There are a total of 50 million HDG tokens, 30 million of which will be available during the crowdsale. Each token costs 0.002 ETH, and there is a hard cap of $15 million for spending. If any tokens are not distributed or sold within the token sale, they will be burnt.

How to Participate in the ICO

Contributing to the Hedge Platform crowdsale is straightforward, particularly if you have previously invested in other cryptocurrency ICOs. Begin by creating an ethereum wallet on MyEtherWallet.com. From there, you can send ETH, the ethereum currency to the crowdsale address. It’s important to use a wallet which you control the private keys for, so don’t use your wallet address at an exchange.

Since the crowdsale has already begun, you can contribute right away.

More on the HDG Tokens

The 30 million tokens sold during the crowdsale account for 60 percent of the total tokens. After this, the next largest percentage, 20 percent, is allocated to the team. The advisors will receive 7 percent of tokens, initial investors will receive 5 percent, and future partners will receive 5 percent, while contributors will receive 3 percent.

The HDG tokens will be a utility ticket for all transactions within the platform. To list or use the instruments, investors will have to buy a token. Every once in a while, the platform will conduct token buybacks via excess fees collected via the platform.

What is an index?

On the traditional stock market, an index is a measurement of the price performance of a group of shares from a particular exchange. The FTSE 100, for example, represents the 100 largest stocks trading on the London Stock Exchange. If those stocks increase in price, the FTSE 100 goes up. If those stocks decrease in price, the FTSE 100 goes down.

What Are the Crypto Indices?

One of the main products that make up the Hedge Project and its platform is the Crypto Indices. These are the very first of their type, a set of commercial cryptocurrency indices that include the official rulebooks. When they are complete, there will be a long list of indices for investors to view, including the Crypto Currencies Top 30 Index, the Crypto Assets Index, and the official Bitcoin Price Index.

To make the indices even more useful, they will include an official rulebook and defined methodology. Thanks to these factors, they can become the benchmark for the cryptocurrency market and work to track the various indices.

Which Indices Are Already Available?

The first index created by Hedge Project is the Bitcoin Price Index, known as BTCCX. This is the very first time a single reference price for multiple BTC marketplaces meeting the criteria has been implemented. It will launch within a few weeks and is already completed. It measures how BTC prices develop and features a transparent rulebook so investors can more accurately use it.

The Cryptocurrency Top 30 Index, CCX30, is also already developed. This index measures how the wider crypto market performs by regularly tracking prices for the top 30 cryptocurrencies, which are determined by market capitalization. This index is live, you can view it on the homepage of the site. It uses calculations based on the prices on multiple exchanges in addition to local distortions and volume, and it has its own detailed rulebook.

Both the Crypto Asset Index and the Crypto Income Index will be developed next. The first should launch in the first quarter of 2018, while the second should launch in the second quarter.

What Are the Index Instruments?

The Hedge Project also features index instruments that are tied to the various values of the index and can be used for trading. They will begin with Crypto Traded Indices, known as CTIs. These are baskets of cryptocurrencies that track a reference index. Those who participate in the market can trade CTIs. The developers of Hedge Project also plan to launch derivative instruments, along with margin accounts, and allow for short positions.

What Is the Crypto Instruments Platform?

The final major product from the Hedge Project is the Crypto Instruments Platform. This platform will eventually be the “go-to” within the market for any investors who want to participate in the cryptocurrency markets. The platform will include information relevant to the crypto market, such as valuation reports and market research. It will also include traded baskets for cryptocurrencies and the professionally designed indices for the cryptocurrencies and crypto assets.

What Will the Hedgetoken Platform Look Like?

At the moment, you can view a preview of the Hedgetoken Platform on the Hedge Project’s website, via the “Platform” page. Upon logging in, it will clearly display your token balance, portfolio value, transactions, and more. This overview is available at a glance for easy account management.

Using the platform, you can track various changes in the markets thanks to the indices that make up the Hedge Project. View the information numerically and in graphs. There is also a section with recent news to help you stay on top of everything related to your crypto investments. Trading on the platform is straightforward, allowing for purchases in cryptocurrencies. The Hedge Platform is working on getting a license for trading fiat currencies, as well.

Who Is Behind the Hedge Project?

The Hedge Project team is made of financial experts with years of experience in a range of financial institutions. Team members have worked in Switzerland, London, Frankfurt, and other major centers, using their knowledge to enhance the project. The head project manager, Savo Lovsin, has experience as the head of financial advisory at a Big4 company and with one of the biggest arbitrage trading companies.

Giovanni Lesna, who is in charge of product development, is a financial product specialist in both consulting experience and mutual funds. He has worked as a business consultant with trading platforms, fintech experience, and banking risk.

Janez Benedik is an investment analyst and finance specialist who has international experience within various parts of the insurance industry, including accounts, operations, and management.

Kristjan Dekleva is an investment analyst and financial specialist who focuses on investment banking and private equity. He is highly interested in monetary and financial systems worldwide.

Luka Gubo, an advisor, is a senior quantitative analyst who develops and implements quantitative models and has experience in developing models to manage risk.

Gasper Stih is a community and brand manager who focuses on communication and social media campaigns in addition to other marketing strategies.

Jure Grabnar, one of the developers, is highly skilled with multiple years working in software engineering, along with development and design of data processing algorithms that are used for trade systems. Matej Zrimsek is another project developer with years of experience, as is Klemen Gantar. Matic Nedog is the legal representative who specializes in business, corporate, insolvency, and competition law, with a focus on digital platforms. Primoz Novak is the other half of the legal team with a specialization in multiple areas, including international law related to cryptocurrencies.

Conclusion

The Hedge Project, specifically the Crypto Traded Indices, has the potential to make crypto trading more transparent, as well as simpler. Once this platform is fully developed, everyone will find it easier to participate in the crypto market in a way that is accessible as well as efficient. The instruments that account for short selling and long exposure will be particularly useful by letting participants determine a project’s true value and make a decision about whether and how much to invest.

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